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CryptoQuant Analysts Say New Bitcoin Whales Outbid Old Whales
- CryptoQuant CEO Ki Young Ju reports new Bitcoin investors hold $110bn, nearly double the assets of long-standing holders.
- The analysts exclude addresses associated with exchanges and miners.
- But this also means ETF-related Bitcoin, held by central exchanges, is omitted, potentially underrepresenting institutional activity.
- Meanwhile Bitcoin is trading within a choppy range.
Old Bitcoin whales have been outpaced by newer buyers, it seems. According to CryptoQuant CEO Ki Young Ju, “New whales’ initial investment in Bitcoin is almost twice the old whales’ cumulative total.”
As of 21 April, new market participants hold US$110bn (AU$169bn), compared to US$67bn (AU$103bn) held by long-term HODLers.
Related: IMF Report Stresses Bitcoin’s Importance in Enhancing Financial Stability
CryptoQuant excludes addresses associated with central exchanges (CEX) and Bitcoin miners, as these typically hold large balances that can skew the overall picture. They also do not represent market sentiment or investment strategies of individual investors or independent whales.
To be classified as a short-term whale the address balance needs to be over US$1k (AU$1.5k) with an average coin age below 155 days.
The growth in new whales could indicate a growing confidence in Bitcoin among newer investors or a change in the market dynamics, where newer participants are entering with larger capital.
However, this does not mean that Spot Bitcoin ETFs are included in CryptoQuant’s analysis – since these exchanges serve as custodians for Bitcoin ETFs, the investment volumes and activities associated with these ETFs are not reflected in the dataset.
This could lead to an incomplete picture of market dynamics, particularly underestimating the role of institutional and new large-scale investors brought in through ETFs.
Bitcoin Fights to Hold onto $67k
Meanwhile, the number one crypto is trying to make its way above US$67k (AU$103k) again this week, as it recovers from the pre-halving correction.
Related: Aussie Analyst Miles Deutscher on How to Navigate Choppy Post-Halving Markets
Analyst Dennis Liu said investors should not wait for the “perfect entry point” adding that timing the market is tricky and any dips from hereon are excellent buying opportunities.
According to him, artificial intelligence and gaming are top bets, with many potentially increasing by 50x or even 100x, amid forecasts that Bitcoin could reach US$100k (AU$153k) in 2024.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
